The Real Deal New York

Atelier condo board sues Moinian Group over alleged construction defects

Suit claims Moinian diverted funds to adjacent luxury tower

August 30, 2012 06:00PM
By David Jones

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From left: the Atelier, a rendering of 605 West 42nd Street and Joseph Moinian

The managers of the luxury condominium Atelier is suing the Moinian Group — alleging that the developer used funds from the West Side property to help complete an adjacent West 42nd Street tower.

The Costas Kondylis-designed Atelier, located at 635 West 42nd Street, has 478 residential units, and sits right next to the site of Moinian’s planned luxury tower at 605 West 42nd Street, which will have 970 apartments and 100,000 square feet of retail space.

The Atelier Board of Managers alleged, in an Aug. 22 suit filed in New York State Supreme Court, that the firm, led by developer Joseph Moinian, failed to replace a defective HVAC system, shut down the swimming pool in 2010 and allowed water to leak into a children’s playground. The board claims it replaced the HVAC system and repaired the playroom out of its own funds.

The board is also claiming that the developer failed to get a permanent certificate of occupancy from the city Department of Buildings, that he stopped providing maintenance services at the building’s fitness center and diverted electricity from the condo to operate a construction trailer on the adjacent site.

The suit comes four months after the condo ended a management deal with Cooper Square Realty and the board took over control of maintenance services in house.

River2River Realty, led by company president Dan Neiditch, handles sales and rentals at the building.

The building was expected to save $200,000 a year by becoming a self-managed and -maintained building — one that has operated with some of the lowest common charges among any condo in New York.

The Moinian Group has claimed that the building was sold out in 13 months; however Streeteasy.com has 40 active sales listings at prices ranging from $675,000 for a one-bedroom to $15 million, for a 6,000 square foot, eight-bedroom apartment.

Moinian officials were not immediately available for comment.

  • Harlemite

    And the price of new construction just went up. Every lawsuit like this makes insurance rates higher and higher. We aren’t building enough as it is, now we’ll build even less.
    The day of the $4,000 walk-up one bed are right around the corner.

  • Scrooged

    I guess Moinian should turn around and sue JD Carlisle since they actually built the building and then sold it to Joe.

  • Raging Realtor

    First of all.The rentals and sales at the Atelier on street easy are bogus. Thats why he couldnt elaborate on t when asked. Streeteasy allows these bogus rentals and sales to be uploaded from his site. Total bait and switch.

  • EPM

    It is a shame for a developer to face lawsuits like that one. A building less than 10 years old….

  • savagecity

    Another Dan Neiditch special.

  • Sofia10036

    I worked for and with Moinian for many years, even for a bit on this project specifically. Everything you hear about him is true – he tells his employees to not paid bills, he is a liar, a thief and will screw everyone (and actually did at one point while married!)….Stay far away from this man and never do business with him. Don’t lease his spaces and don’t rent his apartments.

  • Sofia10036

    Atelier: I worked for Moinian under this project and I know he did you wrong. If you need someone to testify against him, let me know. My pleasure. He’s screwed enough people and it’s enough.

  • NSF

    What’s your name Sofia? Being that you’re so vocal about standing up for once, tell us your name so we can see if you’re legitimate.

  • Sofia10036

    NSF, the facts speak for themselves. My only crime was working for this criminal for so many years and not doing anything about it. He was my employer and I felt I had no coice. He has ruined many lives and businesses so he could live well.

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